SlateStone Wealth LLC has expanded its investment in Broadcom Inc. (NASDAQ: AVGO) by acquiring an additional 278 shares during the second quarter of 2023. This increase raises its total holdings to 13,828 shares, valued at approximately $3.81 million as of its latest filing with the Securities and Exchange Commission on September 4, 2023.
The move reflects a broader trend among institutional investors, many of whom have recently adjusted their positions in the semiconductor manufacturer. Nuveen LLC notably entered the market with a significant new stake worth around $6.65 billion in the first quarter. Additionally, Price T Rowe Associates Inc. MD ramped up its holdings by 37.8%, now owning 65.5 million shares valued at about $10.97 billion after purchasing nearly 18 million shares.
Vanguard Group Inc. also increased its stake slightly by 1.3% during the second quarter, bringing its total to 483.4 million shares, valued at roughly $133.26 billion. Similarly, Goldman Sachs Group Inc. raised its position by 16.7%, owning 31.85 million shares worth about $5.33 billion. Deutsche Bank AG also enhanced its investment by 36.9%, holding 15.76 million shares valued at around $2.64 billion.
Institutional investors now control approximately 76.43% of Broadcom’s shares, indicating significant confidence in the company’s prospects.
Insider Transactions and Company Performance
In addition to institutional trading, there were notable insider transactions at Broadcom. On September 17, 2023, Mark David Brazeal sold 16,558 shares at an average price of $347.61, totaling approximately $5.76 million. This transaction reduced his holdings by 4.79%, leaving him with 329,302 shares valued at about $114.47 million.
Another insider, Director Justine Page, sold 800 shares on November 14, 2023, for approximately $264,912. This sale decreased her position by 3.61%, with her remaining 21,382 shares valued at around $7.08 million.
Over the past 90 days, insiders have acquired 3,550 shares valued at approximately $1.23 million, while selling 665,271 shares, cumulatively worth $225.48 million. Currently, insiders own about 2.00% of Broadcom’s stock.
Broadcom’s financial performance has been robust. For the quarter ending September 4, 2023, the company reported earnings per share (EPS) of $1.69, surpassing analysts’ expectations of $1.66. The company achieved a net margin of 31.59% and a return on equity of 36.60%. Revenues for the quarter reached $15.95 billion, exceeding projections of $15.82 billion, and marking a 22.0% increase year-over-year.
Dividends and Analyst Outlook
Broadcom has also announced a quarterly dividend of $0.59, paid to stockholders of record on September 22, 2023. This reflects an annualized dividend of $2.36 and a yield of 0.6%. The company’s current dividend payout ratio stands at 60.20%.
Wall Street analysts have largely expressed optimism regarding Broadcom’s future performance. Recent reports show several firms adjusting their price targets significantly. Truist Financial raised its price objective from $295.00 to $365.00, while Bank of America elevated its target from $300.00 to $400.00. Oppenheimer, Piper Sandler, and JPMorgan Chase & Co. also increased their targets, with JPMorgan setting a new target of $400.00.
Overall, Broadcom currently holds a consensus rating of “Buy” among analysts, with a target price averaging $374.21. The company’s solid financial results, alongside institutional investment activity, suggest a positive outlook moving forward in the semiconductor sector.
